ISLAMABAD, June 18: Foreign direct investment in Pakistan during first 11 months (July-May 2002-03) stood at $742.8 million against $330.6 million during the same period last year, showing an increase of 125 per cent.
The State Bank (SBP) figures made available to Dawn suggest that net foreign investment (private) during the first 11 months stood at $744.7 million against $329.7 million last year. However, there was a net outflow of portfolio investment to the tune of $1.9 million against $0.9 million.
Financial business emerged as the top sector to fetch highest investment of $205.5 million, chiefly because of privatization of United Bank Limited. Last year, FDI in this sector was only $3.4 billion.
The foreign direct investment (FDI) in oil and gas exploration maintained a steady growth of 16 per cent to $159.6 million against $138 million of the same period last year.
The FDI in chemical sector also increased by about nine times to $81.9 million against $8.9 million during the same period of last year. This was followed by transport sector in which FDI inflow increased by more than 300 per cent to $80.3 million against $19.5 million investment during 11 months of last fiscal year.
The United Kingdom, the US and the UAE emerged as the first, second and third largest contributors to Pakistan’s investment sector with direct investment of $213.4 million, $186 million and $115.5 million respectively.
In overall terms, however, the investment from the US stood at $190.8 million, $187.5 million from the UK and $118.2 million from the UAE. The drop in total investment from the UK was because of $26 million outflow of investment from the stock market.
While the total investment from the US almost remained static when compared with last year, the direct and total investment from the UK increased by a mammoth seven times and 11 times over the same period last year. Last year, FDI form the UK was $25.6 million against $213.4 million while total investment from that country stood at $1.7 million last year against $187.5 million this year.
The direct investment from the UAE also increased this year by more than five times when compared to $19.2 million last year. Total investment from the UAE also increased by more than five times to $118.2 million this year against $18.2 million last year.
This was followed by investment from Saudi Arabia at $39.7 million and Japan with $13.3 million during first 11 months of the current year. Other major investment contributors include Germany, France, Hong Kong, Italy, Canada, Netherlands, Korea, Singapore, China, Australia and Switzerland.
Trade sector attracted an investment of $37.2 million during the 11 months against $31.3 million of same period last year showing an increase of 19 per cent. The FDI in the textile sector increased by almost 82 per cent to $24.7 million against $13.6 million during 11 months of the last fiscal year.
Similarly, FDI in the construction sector during 11 months stood at $20.6 million as compared to $11.3 million, showing an increase of 82 per cent. FDI in the communication sector also increased by more than 100 per cent to $22.7m when compared with $11.2 million last year.
The FDI in the power sector dropped by about 9.5 per cent to $31.1 million against $34.4 million of the same period last year. Of this, investment in the thermal sector dropped from $28.5 million during 11 months of the last year to $10.5 million, showing a reduction of more than 63 per cent. The investment in the hydel power generation, however, increased by 71 per cent to $20.5 million against $5.9 million of the same period last year.
Investment in the personal services also increased by 137 per cent to $18.5 million against $7.8 million same period last year.
There was no foreign direct investment in tobacco and cigarettes and rubber and rubber products this year against $0.8 million and $0.2 million FDI last year while it decreased to $6 million in the food sector against $6.6 million last year.
Interestingly, FDI in the machinery, both electrical and other than electrical has slightly increased to $10.4 million against $9.7 million last year.
The FDI in the telecom sector stood at $13 million against $5.5 million last year while FDI in information technology increased to $8.7 million from $5.4 million same period last year.
The investment in leather and leather products was $1.2 million, mining and quarrying $1.3 million, petroleum refining $2.1 million, pharmaceutical $6.1 million and metal products and basis metals $0.2 million.
Investment in the electronics sector dropped by almost 64 per cent to $5.6 million against $15.6 million same period last year. Of this, investment in consumer electronics reduced by 71 per cent to $3.6 million against $12.3 million last year. Similarly, investment in industrial electronics decreased by more than 39 per cent to $2 million against $3.3 million last year.
The FDI in the transport equipment also dropped by 60 per cent over 11 months of last year as it stood at only $0.4 million this year against $1 million last year. Of this, investment in the car sector has reduced by 75 per cent when compared with last year.